Modi’s Fight Against Black Money : Now ROC Radar on Long Outstanding Loans & amp; Deposits Before or During The Demonetization

The Prime Minister Narendra Modi’s action against the black money is still on the field and without caring for the upcoming Parliament election and vote politics, he is working tirelessly and raised a war against the Black Money. In his new action plan, now companies are required to file the details of outstanding loans or receipts of money which are similar to deposit in its books of accounts with the Registrar of Companies. With this way, ROC will collect the data of long outstanding loans with or without interest and will use in curbing the black money which is lying in the corporate as loans or advances.

As per newly added sub rule 16A of  Companies (Acceptance of Deposits) Rules, 2014 notified vide Companies (Acceptance of Deposits) Amendment Rules, 2019, every company other than a government company shall file a onetime return of outstanding receipt of money or loan by a company but not considered as deposits from 1st April, 2014 that is after the commencement of the new Companies Act, 2013 to the date of publication of notification in the official gazette as specified in FORM DPT-3 within ninety days from the date of publication of this notification along with fee as may be prescribed.This Form is to be filed by all companies other than Government Companies for secured as well as unsecured loans outstanding from 1st April, 2014 to the date of notification i.e. 22nd January, 2019.

This DPT 3 form is a multipurpose form which may be in use for i) return of deposits, ii) return of disclosure of money or loan received by a company but not considered as deposit as per rules and iii) one time return for disclosure of details of outstanding money or loan received by a company but not considered as deposit. All amount of money which company has received and remain outstanding, are required to be reported. The information can be categorized as all outstanding receipts, Unsecured Loans or Secured Loans but the details mentioned above shall not include any amount considered as deposits.

As per the amendment rules dated 22nd Jan 2019 DPT 3 shall be filed for Outstanding Loan and Receipt of money (not being deposits) starting from 1 April 2014.Every Company, be its small company, Public company, Private Company, One Person Company shall file an e Form DPT-3 for a period from 1st April, 2014 to the date of publication of this notification i.e. 22nd Jan, 2019 and the last date of filing is 22nd April 2019. Further If a company does not accept loan or does not having any outstanding loan, then there is no need to comply with the provisions of this rule. It means the loans and advances or amounts of money receivable which have been undertaken on or after 1 April 2016 and still not fully settled shall be reported.Following outstanding loans will also be included under the ambit of this provision:-

1. Any Amount received as loan/facility from any Banking Company/SBI/its Subsidiary Banks/Banking institutions notified by CG/Public Financial Institutions.

2. Any amount received against issue of Commercial Paper/any other instruments issued as per guidelines of RBI.

3. Any amount received from by a Company from any other Company.

4. Any amount received pursuant to an offer made towards subscription to any securities, including share application money or advance for share allotment of which allotment is pending.

5. Any amount of money received from holding or subsidiary company of a company or its associate company.

However, following companies are not required to file this return.

1. A Non Banking Finance Company registered with RBI

2. A Housing Finance Company registered with National Housing Bank

3. A Banking Company

4. Any other Company which the Central Government may specify from time to time.

5. Any amount received in the course of or the purpose of the business for the following :-

i. As advance for the supply of goods or provision of services provided such advance is appropriated against supply of goods or provision of service within 365 days from the receipt of such amount,

ii. As advance received in connection with consideration for property under an agreement or arrangement.

iii. As security deposit for the performance of the contract for supply of goods or provision of services.

iv. As advance received under long term projects for supply of capital goods. If any amount received under clause (I),(II) and (IV) becomes refundable due to the reasons that the company accepting money does not have necessary permission or approval to deal with the goods or services then the amount received shall be deemed to be a deposit after the expiry of 15 days from the date they become due for refund.

v. Any amount brought in by the promoters themselves or their relatives by way of unsecured loan in pursuance of a stipulation of any lending institution on the promoters. Such exemption shall be available only till the loans of the Financial Institutions are not repaid and not thereafter

vi. Any amount accepted by a Nidhi Company in accordance with rules made u/s 406 of the Act.

While furnishing form DPT 3, the certificate of the statutory auditor is required to be attached. The penalties for non-filing of DPT 3 after the due date shall attract a penalty of Rs 5,000 and Rs 5,000 per day in case of a continuing default, on the company and its officers in default.The Form DPT-3 needs to be submitted electronically by all the companies registered in India. This rules have set to widen the reporting requirements. Previously, only deposits or items in nature of deposits were required to be reported but after the amendment rules, it has also included in its scope loans and other outstanding receipts.

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June 2021